How do exchanges handle security?

What security measures do cryptocurrency exchanges implement to protect user funds?

Cryptocurrency exchanges typically use a combination of cold storage, two-factor authentication, and encryption to secure user funds.

Can you explain what cold storage means?

Cold storage refers to keeping the majority of funds offline, away from the internet, to protect them from hacking.

How do exchanges handle security breaches if they occur?

In the event of a security breach, exchanges usually have protocols to freeze accounts, investigate the breach, and notify affected users.

Are there any regulations that exchanges must follow regarding security?

Yes, many countries have regulations that require exchanges to implement specific security measures and report breaches.